Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2008 Earnings Presentation

36 slides from Tokyo Electric Power's earnings presentation, Oct 31, 2008

1. Slide 1: FY2008 2nd Quarter Financial Results Presentation Materials

   TEPCO FY2008 2nd Quarter Financial Results (April 1, 2008 – September 30, 2008) Presentation Materials October 31, 2008 Tokyo Electric Power Company Managing Director Masaru Takei The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

2. Slide 2: Regarding Forward-Looking Statements (Performance Projections)

   TEPCO Regarding Forward-Looking Statements (Performance Projections) Certain statements in the following presentation regarding Tokyo Electric Power Company’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather predictions ab

3. Slide 3: Overview of FY2008 2nd Quarter Financial Results

   TEPCO Ⅰ．Overview of FY2008 2nd Quarter Financial Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

4. Slide 4: FY2008 2nd Quarter Results Summary (Consolidated and Non-consolidated)

   FY2008 2nd Quarter Results Summary (Consolidated and Non-consolidated) 2 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2008 FY2007 Comparison* 1st half (A) 1st half (B) (A)-(B) (A)/(B)(%) Electricity sales volume (Billion kWh) 147.9 1

5. Slide 5: Revised Performance Outlook for FY2008 -1

   Revised Performance Outlook for FY2008 -1 (Key Factors Affecting Performance and Financial Impact) 3 TEPCO Key Factors Affecting Performance 1st half Full year FY2008 FY2007 FY2008 projection FY2007 actual performance projection (as of July 28) actual performance (as of October 31) (as of July 28) a

6. Slide 6: Revised Performance Outlook for FY2008 -2

   Revised Performance Outlook for FY2008 -2 (Comparison with previous projection) 4 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating revenues Operating income or loss Ordinary income or loss Net income or loss Present projection （O

7. Slide 7: Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station

   Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station 5 TEPCO FY2007 FY2008 1st half FY2008 full year projection* 【Ref.】FY2008 full year projection (Unit: Billion yen) actual performance actual performance (as of October 31) (as of July 28) Total 615.0 322.0 658.0 748.0 Fuel expenses, e

8. Slide 8: Special measures for Fuel cost adjustment

   Special measures for Fuel cost adjustment 6 TEPCO ◆ Implement special measures for fuel cost adjustment of January to March 2009, for regulated retail customers. Power volume fee Fuel cost adjustment fee Volume of Electric electric power Fuel cost Electric Electric Fee Base fee power usage in ＝ ＋ ×

9. Slide 9: FY2008 2nd Quarter Financial Results (Detailed Information)

   TEPCO Ⅱ. FY2008 2nd Quarter Financial Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

10. Slide 10: Revised Performance Outlook for FY2008 -3

    Revised Performance Outlook for FY2008 -3 (Comparison with previous year) 8 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating revenues Operating income or loss Ordinary income or loss Net income or loss Present projection （October

11. Slide 11: Statement of Income (Consolidated)

    Statement of Income (Consolidated) 9 TEPCO (Unit: Billion yen) FY2008 FY2007 Comparison 1st half (A) 1st half (B) (A)-(B) (A)/(B) (%) Operating revenues 2,870.2 2,677.1 193.1 107.2 Operating expenses 2,994.7 2,408.8 585.9 124.3 Operating income or loss -124.5 268.2 -392.8 － Non-operating revenues 39

12. Slide 12: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) 10 TEPCO (Unit: Billion yen) FY2008 FY2007 Comparison 1st half (A) 1st half (B) (A)-(B) (A)/(B) (%) Ordinary revenues 2,767.5 2,565.6 201.8 107.9 Operating revenues 2,746.8 2,549.1 197.6 107.8 Electric power operating revenues 2,709.3 2,525.9 183.3 107.3 Increas

13. Slide 13: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 11 TEPCO (Unit: Billion yen) FY2008 FY2007 Comparison 1st half (A) 1st half (B) (A)-(B) (A)/(B) (%) Ordinary expenses 2,963.7 2,379.6 584.0 124.5 Operating expenses 2,890.8 2,300.9 589.8 125.6 Electric power operating expenses 2,848.2 2,279.9 568.2 124.9 Personn

14. Slide 14: Period-on-Period Comparison of Ordinary Expenses – 1

    Period-on-Period Comparison of Ordinary Expenses – 1 (Non-consolidated) 12 TEPCO Personnel expenses (¥108.7 billion to ¥231.9 billion) +¥123.1 billion Salary and benifits(¥158.1 billion to ¥153.7 billion) -¥4.4 billion Factors include lower employee bonuses Retirement benefits(¥-93.3 billion to ¥33.

15. Slide 15: Period-on-Period Comparison of Ordinary Expenses – 2

    Period-on-Period Comparison of Ordinary Expenses – 2 (Non-consolidated) 13 TEPCO Maintenance expenses (¥212.5 billion to ¥187.1 billion) -¥25.4 billion Generation related (¥96.8 billion to ¥86.5 billion) Factors for Increase/Decrease -¥10.2 billion Hyddro power ：Decrease in maintenance expeneses of

16. Slide 16: Period-on-Period Comparison of Ordinary Expenses – 3

    Period-on-Period Comparison of Ordinary Expenses – 3 (Non-consolidated) 14 TEPCO Factors for Increase/Decrease Purchased power to other utilities： Power purchasing cost (¥363.2 billion to ¥422.2 billion) Decrease in power exchange for resource shortage +¥59.0 billion Purchased power to other supplie

17. Slide 17: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) 15 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Bond issues in FY2008 Sep. 30, Mar. 31, Comparison Issue amount Period Coupon rate 2008 (A) 2008 (B) (A)-(B) (A)/(B) (%) Issue date (bil

18. Slide 18: Free Cash Flow and its Application

    Free Cash Flow and its Application (Consolidated and Non-consolidated) 16 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2008 FY2007 Comparison 1st half (A) 1st half (B) (A)-(B) (A)/(B) (%) Net cash provided (Consolidated) 154.7 349.7

19. Slide 19: Segment Information-1 (Actual performance)

    Segment Information-1(Actual performance) 17 TEPCO (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) Operating revenues Operating income※ FY2008 FY2007 Comparison Increase or Increase or decrease decrease 1st half (A) 1st half (B) (A)-(B) (A)/(B) (%) Information and Telecomm

20. Slide 20: Segment Information-2 (Energy and Environment Segment <Gas Company>)

    Segment Information-2 (Energy and Environment Segment <Gas Company>) 18 TEPCO Performance Performance (Unit: Billion yen) FY2008 FY2007 Comparison 1st half actual performance actual performance (A)-(B) (A)/(B) (%) Operating revenues 31.3 17.5 13.7 178.3 Operating income or loss -6.0 0.9 -6.9 － Gas S

21. Slide 21: Total Power Generated and Purchased and Electricity Sales Volume

    Total Power Generated and Purchased and Electricity Sales Volume 19 TEPCO Total Power Generated and Purchased (Units: Billion kWh, %) Average Monthly Temperature (Unit: ℃) FY2008 Jul. Aug. Sep. 1st quarter 2nd quarter 1st half FY2008 26.4 26.3 23.6 Total power generated and purchased 73.72 86.33 160

22. Slide 22: Performance of All-Electric Housing

    【Reference】Performance of All-Electric Housing 20 TEPCO (thousand) （Ref.）All-Electric Housigs Transition of Cumulative Number of All-Electric Housings (thousand) 600 among New Housings 522 100 91 25.0% 500 Sales Target 456 22% FY2006: 96 thousand housings 77 80 20.0% FY2007:150 thousand housings 400

23. Slide 23: Mega Solar Power Generation Plant Plan

    【Reference】 Mega Solar Power Generation Plant Plan 21 TEPCO Overview of Facilities Plan for Kawasaki Waterfront ■Plan Overview ■Facilities Overview Kawasaki City Plant Name Ukishima Solar Power Plant (Tentative name) Ogishima Solar Power Plant (Tentative name) Ukishima-cho, Kawasaki-ku, Kawasaki, Og

24. Slide 24: The Present Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    TEPCO 【Reference】 The Present Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives - Progress & Key Changes since the Financial Result Announcement on July 28, 2008 - The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

25. Slide 25: Construct Safe, Secure, Disaster-Resistant Nuclear Power Stations

    Construct Safe, Secure, Disaster-Resistant Nuclear Power Stations 23 TEPCO Restoration Initiatives at the Kashiwazaki-Kariwa Nuclear Power Station Earthquake-Resistance and Safety Improvement Initiatives Earthquake- Geological survey and Facility inspection response analysis assessment Reflects know

26. Slide 26: Earthquake-Resistance

    TEPCO Overview of Status of Initiatives 24 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Facility Soundness Evaluation Submission of inspection and Submitted Submitted Submitted Submitted Submitted Submitted Submitted Build- evaluation plan (July 18, (Sept. 18, (July 18, (Sept. 18, (Sept. 18

27. Slide 27: Investigation and Analysis Initiatives to Date

    【Facility Soundness Evaluation】 TEPCO Investigation and Analysis Initiatives to Date 25 ◆ Inspection of Buildings and Structures - On September 1, TEPCO submitted the inspection and evaluation report for the buildings and structures of Unit 7 (reactor and turbine buildings, exhaust stack, emergency

28. Slide 28: Confirmation of System Soundness

    【Facility Soundness Evaluation】 26 TEPCO Confirmation of System Soundness ◆ TEPCO is currently conducting system-level inspection and evaluation (check of system functions and evaluation of system soundness) at Unit 7, where it has confirmed the soundness of all individual pieces of equipment (equip

29. Slide 29: Determination of Ground Movement Standards (Ss)

    【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Determination of Ground Movement Standards (Ss) 27 ◆ Based on the revised Regulatory Guidelines for Reviewing Seismic Design of Nuclear Power Reactor Facilities, TEPCO conducted geological surveys, evaluated active faults and analyzed

30. Slide 30: Determination of Ground Movement Standards (Ss)

    【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Determination of Ground Movement Standards (Ss) 28 ◆ TEPCO submitted a report on the geology and geological structure of the site and its surrounding area to NISA on October 22. This report is a partially revised and supplemented editi

31. Slide 31: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 29 TEPCO Reinforcement Work ◆ Work has been done to enable the reactor buildings for units 1 through 7 to endure 1,000 gal of seismic motion on the base mats in order to increase the earthquake resistance and safety of each facility. ◆ Curre

32. Slide 32: Damage to the Low-Pressure Turbines of Units 6 and 7

    【Reference】 30 TEPCO Damage to the Low-Pressure Turbines of Units 6 and 7 ◆ Overview - Detailed inspection of the turbines confirmed fracturing in rotor blade fork sections of the low-pressure turbine of Unit 7. In addition, nondestructive inspection confirmed indicative patterns in rotor blade fork

33. Slide 33: Factors that Contributed to Intensification of Seismic Motions

    【Reference】 31 TEPCO Factors that Contributed to Intensification of Seismic Motions ◆ Effects of the hypocenter and subsurface structure amplified the seismic motions ◆ The newly discovered mechanism (factor 1 to 3) was reflected in determining the ground movement standard Unit 5 reactor building Un

34. Slide 34: Reinforcement Works Case -1

    【Reference】Reinforcement Works Case -1 32 TEPCO ◆ Strengthening of Supports for Infrastructure such as Piping Reduced shaking due to addition of supports More robust structure due to strengthening of supports The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

35. Slide 35: Reinforcement Works Case -2

    【Reference】Reinforcement Works Case -2 33 TEPCO ◆ Improved earthquake resistance for exhaust stack and the roof trusses of reactor buildings Installation of vibration-control equipment Absorbs shaking by contracting Exhaust Fluid resistance of oil absorbs vibration stack energy, thus suppressing exh

36. Slide 36: Governmental Inspection and Investigation System

    【Reference】 TEPCO Governmental Inspection and Investigation System 34 METI Cabinet Office and Nuclear and Industrial Nuclear and Industrial Nuclear Safety Safety Agency (NISA) Double check Commission Safety Division Monitoring and auditing of Report administrative agencies’ regulations Subcommittee

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